Online Trading India

Mutual Funds

Share Market

Credit Card

How Did the State Bank Of India Raise Rs 15,000crore

State Bank of IndiaBSE 0.97 % has raised Rs 15,000 crore from domestic and foreign institutional investors through Qualified Institutional Placement (QIP) of shares, several sources familiar with the plans said on Monday, 5th June 2017.

The QIP closed on Tuesday morning and is believed to have received demand in excess of Rs 20,000crore.

The share sale by the country’s biggest lender — the largest QIP to hit Indian markets, surpassing SBI’s Rs 8,000-crore issue in January 2014 — was fully committed prior to the launch, people cited above said.

The floor price of the share sale was fixed at Rs 287.58 apiece for a face value of Rs 1 each. The bank said in a statement that it may offer a discount of not more than 5% to the floor price. The QIP will boost SBI’s capital adequacy to more than 14.50% from 13.11% now and ensure that it does not need capital for the next two years, according to the people cited above.

SBI had announced plans to raise funds through a follow-on public offer and institutional placement in the current fiscal and sought applications from merchant bankers to manage the issue. The planned fund-raising follows the merger of five associate banks and Bharatiya Mahila Bank in April.